This ETF is at historically low sentiment levels with a lot of flow coming in. Candidate to look at!

This ETF has fallen 56% in 7 months and has top players among its components.

Evolution of the ETF in the last 2 years

KWEB is an ETF that invests mainly in companies whose main source of income is the internet (see ETF fact sheet here). The ETF counts among its main holding companies such as Tencent, Alibaba, Meituan and Baidu. In terms of sentiment, in recent days, only 4% of its shares closed above the 200-day moving average, one of the worst figures on record. On the side of the flow in and out the fund, in the last 3 months USD3.8 trillion have entered the fund which explains the increase in the fund's AUM by USD2.2 billion considering the ETF has fallen more than 30% in that period .

I think the fall in this ETF is excessive. The great risk is the regulatory one due to potential new intervention actions the Chinese Government may take and also that of a worse economic scenario in that country. However, due to the speed of the decline, it is perceived that these risks are more likely to be embedded in the prices of the assets that make up the fund.

Note: This is not an investment recommendation or suggestion, we only share our ideas of the assets that we find interesting to look at. You should consult with your Investment Advisor before making any purchase or sale decision. The result of the purchase of any of the instruments mentioned in these notes is 100% your responsibility, whether profit or loss.